false000115846300011584632024-07-302024-07-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 30, 2024
JETBLUE AIRWAYS CORPORATION
(Exact name of registrant as specified in its charter)
| | | | | | | | | | | |
| Delaware | 000-49728 | 87-0617894 |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| | | |
27-01 Queens Plaza North | Long Island City | New York | 11101 |
| (Address of principal executive offices) | (Zip Code) |
(718) 286-7900
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
| Title of each class | Trading Symbol | Name of each exchange on which registered |
| Common Stock, $0.01 par value | JBLU | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On July 30, 2024 we issued a press release announcing our financial results for the second quarter ended June 30, 2024. A copy of the press release is attached to this report as Exhibit 99.1 and is incorporated herein by reference.
The information included under Item 2.02 of this report (including the exhibits) is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 7.01 Regulation FD Disclosure.
On July 30, 2024 we provided an update for investors presenting information relating to our financial outlook for the third quarter ending September 30, 2024 and full year 2024, and other information regarding our business. The update and materials to be used in conjunction with the presentation are furnished herewith as Exhibit 99.2 and Exhibit 99.3 and are incorporated herein by reference.
The information included under Item 7.01 of this report (including the exhibits) is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| | | | | | | | |
| | |
Exhibit
Number | | Description |
| | Press Release dated July 30, 2024 of JetBlue Airways Corporation announcing financial results for the second quarter ended June 30, 2024. |
| | Investor Update dated July 30, 2024 of JetBlue Airways Corporation. |
| | Earnings Presentation dated July 30, 2024. |
| 104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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| | | JETBLUE AIRWAYS CORPORATION |
| | | (Registrant) |
| | | |
| Date: | July 30, 2024 | By: | /s/ Dawn Southerton |
| | | Dawn Southerton |
| | | Vice President, Controller |
| | | (Principal Accounting Officer) |
Ex 99.1 - Earnings Release
JETBLUE ANNOUNCES SECOND QUARTER 2024 RESULTS
Exceeded second quarter guidance targets
Introducing JetForward, the evolution of JetBlue's strategy to restore profitability
Targeting $800M - $900M of incremental EBIT (1) in 2027
NEW YORK (July 30, 2024) - JetBlue Airways Corporation (NASDAQ: JBLU) today reported its financial results for the second quarter of 2024.
"We closed the first half of 2024 with meaningful year-over-year improvements in our operation and exceeded our second quarter guidance through strong execution, early evidence the changes we are implementing as part of our refocused strategy are yielding positive benefits," said Joanna Geraghty, JetBlue's chief executive officer. "Today, and as the year progresses, we are excited to share more details about JetForward, our strategic framework to return JetBlue to sustained profitability, and the four priority moves aimed at driving significant value over the coming years.
"These include boosting reliability and doubling down on our commitment to caring service to improve satisfaction and drive cost savings; reinvesting in building the best leisure network on the East Coast, where we are positioned to win; enhancing our existing product offerings and loyalty perks to better deliver the elevated and differentiated experiences our customers want; and keeping our costs low so that we can continue to offer customers exceptional value in the sky as we build a secure financial future for JetBlue."
"In the second quarter, we continued to implement our JetForward strategy with the announcement of more significant network changes. We are actively reinvesting in our core geographies in New York, New England, Florida and Puerto Rico, while exiting routes and BlueCities that don't meet our financial hurdle rate. As we progress through the second half of the year, we'll be announcing additional initiatives designed to further enhance our customer value proposition, close the gap in our product offering to our peers and drive significant financial benefit," said Marty St. George, JetBlue's president.
Four Priority Moves Underpin $800M - $900M Targeted Incremental EBIT from 2025 - 2027
•Reliable & Caring Service
◦Improving on-time performance through multiple approaches including investments in tools and technology, designed to enable better planning and recovery.
◦Delivering outstanding customer service and a consistent experience, from pre-booking to post-travel.
•Best East Coast Leisure Network
◦Refocusing our network around leisure flying originating in New York, New England, Florida and Latin geographies.
◦Recently announced new routes to meet our core customers' needs by doubling down on leisure flying in New England, including adding Manchester, New Hampshire to our network, the tenth airport with JetBlue service in New England.
◦Announced four tranches of network changes to-date culminating in 15 BlueCity closures and over 50 route exits as we reduce unprofitable flying.
•Products & Perks Customers Value
◦Enhancing our product offerings and loyalty perks to attract customers that value high quality and premium experiences.
◦Optimizing product merchandising to maximize revenue potential, including through the recent addition of a complimentary carry-on bag to our Blue Basic fare.
•A Secure Financial Future
◦Sustaining our historical cost advantage through our new business cost transformation program, enabled by data-science driven optimization, new technology investments, and labor & infrastructure productivity, which is forecasted to drive $175 million of structural cost savings through 2027.
◦Restoring balance sheet health through capital discipline, including deferring approximately $3.0 billion of capital expenditures through 2029, designed to also improve our cash flow outlook.
"While many of these underlying initiatives will take time to ramp to their full potential, with the strong foundation of JetForward, we are poised to generate $800 - $900 million of incremental EBIT from 2025 through 2027 and expect the benefit to be realized evenly over those three years," said Ursula Hurley, JetBlue's chief financial officer. "We are setting ourselves on a path to restore our balance sheet health, and in support of securing our financial future, we are announcing an incremental aircraft deferral of approximately $3 billion of planned capital expenditures. Our focus going forward will be on driving value from our existing asset base and, ultimately, generating positive free cash flow."
Second Quarter 2024 Financial Results
•Net income for the second quarter of 2024 under Generally Accepted Accounting Principles ("GAAP") of $25 million or $0.07 earnings per share. Excluding special items, adjusted net income for the second quarter of 2024 of $26 million(1) or $0.08(1) earnings per share.
•Second quarter 2024 system capacity decreased by 2.7% year-over-year.
•Operating revenue of $2.4 billion for the second quarter of 2024, down 6.9% year-over-year.
•Operating expense of $2.4 billion for the second quarter of 2024, a decrease of 0.1% year-over-year.
•Operating expense per available seat mile ("CASM") for the second quarter of 2024 increased 2.6% year-over-year.
•Operating expense, excluding special items for the second quarter of 2024, increased 0.9%(1) year-over-year.
•Operating expense per available seat mile, excluding fuel, other non-airline operating expenses, and special items ("CASM ex-Fuel")(1) for the second quarter of 2024 increased 3.7%(1) year-over-year.
•Average fuel price in the second quarter of 2024 of $2.87 per gallon.
Second Quarter 2024 Key Highlights
•Continued implementation of refocused strategy through network optimization announcements, improved merchandising efforts and initial progress on multi-year reliability initiative.
•Delivered improved operational performance year-over-year with a completion factor of 98.8%, up from 97.8% in 2Q23.
•Progressed on our $300 million 2024 revenue initiative target, delivering ~$140 million of incremental top-line benefit year-to-date.
•Executed on our cost initiatives, as evidenced by structural cost program savings of ~$145 million to-date and fleet modernization cost avoidance of $83 million to-date.
•Ended the quarter with ~$1.6 billion in liquidity, excluding our undrawn $600 million revolving credit facility.
Outlook
"As we execute on our strategy to return to profitability, we remain focused on delivering on our near-term financial goals. In the second half, we expect sequential year-over-year unit revenue momentum to bolster the top-line, supported by our $300 million of revenue initiatives and the continuing normalization of competitive capacity in our core geographies," said Marty St. George.
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| Third Quarter and Full Year 2024 Outlook | Estimated 3Q 2024 | Estimated FY 2024 |
| Available Seat Miles ("ASMs") Year-Over-Year | (6.0%) - (3.0%) | (5.0%) - (2.5%) |
| Revenue Year-Over-Year | (5.5%) - (1.5%) | (6.0%) - (4.0%) |
CASM Ex-Fuel (1) Year-Over-Year (2) | 6.0% - 8.0% | 6.5% - 8.5% |
Fuel Price per Gallon (3), (4) | $2.82 - $2.97 | $2.80 - $3.00 |
| | |
| Capital Expenditures | ~$365 million | ~$1.6 billion |
| | |
"We've faced a number of unit cost headwinds this year, including approximately one point of pressure from the change in recognition of Pratt & Whitney compensation and one point from lower capacity than planned, yet we are maintaining our full year CASM-ex Fuel(1) guidance and now expect it be in the range of 6.5% - 8.5% for the full year," said Ursula Hurley. "We remain committed to cost execution in the second half of the year, when we expect our structural cost program to ramp to run-rate and we introduce our new cost transformation program as part of JetForward."
Earnings Call Details
JetBlue will hold a conference call to discuss its quarterly earnings today, July 30, 2024 at 10:00 a.m. Eastern Time. A live broadcast of the conference call will also be available via the internet at http://investor.jetblue.com. The webcast replay and presentation materials will be archived on the company’s website for at least 30 days.
For further details, see the second quarter 2024 Earnings Presentation available via the internet at http://investor.jetblue.com.
About JetBlue
JetBlue is New York's Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando and San Juan. JetBlue, known for its low fares and great service, carries customers to more than 100 destinations throughout the United States, Latin America, the Caribbean, Canada and Europe. For more information and the best fares, visit jetblue.com.
Notes
(1)Non-GAAP financial measure; Note A provides a reconciliation of each non-GAAP financial measure used in this release to the most directly comparable GAAP financial measure and explains the reasons management believes that presentation of these non-GAAP financial measures provides useful information to investors regarding JetBlue's financial condition and results of operations. In addition, refer to Note A for further details on non-GAAP forward-looking information.
(2)Includes the impact from labor agreements of approximately two points for each of the third quarter and the full year 2024.
(3)Includes fuel taxes, hedges and other fuel fees.
(4)JetBlue utilizes the forward Brent crude curve and the forward Brent crude to jet crack spread to calculate the unhedged portion of its current quarter. Fuel price is based on forward curve as of July 12, 2024.
Forward-Looking Information
This Earnings Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Release are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "expects," "plans" "intends," "anticipates," "indicates," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "may," "will," "should," "seeks," "goals," "targets" or the negative of these terms or other similar expressions. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed, or assured. Forward-looking statements contained in this Earnings Release include, without limitation, statements regarding our outlook and future results of operations and financial position, including our expected return to profitability, expectations with respect to our headwinds, and our business strategy and plans and objectives for future operations, including our refreshed standalone strategies, such as JetForward. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, the risk associated with the execution of our strategic operating plans in the near-term and long-term; our extremely competitive industry; risks related to the long-term nature of our fleet order book; volatility in fuel prices and availability of fuel; increased maintenance costs associated with fleet age; costs associated with salaries, wages and benefits; risks associated with a potential material reduction in the rate of interchange reimbursement fees; risks associated with doing business internationally; our reliance on high daily aircraft utilization; our dependence on the New York metropolitan market; risks associated with extended interruptions or disruptions in service at our focus cities; risks associated with airport expenses; risks associated with seasonality and weather; our reliance on a limited number of
suppliers for our aircraft, engines, and our Fly-Fi® product; risks related to new or increased tariffs imposed on commercial aircraft and related parts imported from outside the United States; the outcome of legal proceedings with respect to the NEA and our wind-down of the NEA; risks associated with cybersecurity and privacy, including information security breaches; heightened regulatory requirements concerning data security compliance; risks associated with reliance on, and potential failure of, automated systems to operate our business; our inability to attract and retain qualified crewmembers; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; reputational and business risk from an accident or incident involving our aircraft; risks associated with damage to our reputation and the JetBlue brand name; our significant amount of fixed obligations and the ability to service such obligations; our substantial indebtedness and impact on our ability to meet future financing needs; financial risks associated with credit card processors; risks associated with seeking short-term additional financing liquidity; failure to realize the full value of intangible or long-lived assets, causing us to record impairments; risks associated with disease outbreaks or environmental disasters affecting travel behavior; compliance with environmental laws and regulations, which may cause us to incur substantial costs; the impacts of federal budget constraints or federally imposed furloughs; impact of global climate change and legal, regulatory or market response to such change; increasing attention to, and evolving expectations regarding, environmental, social and governance matters; changes in government regulations in our industry; acts of war or terrorism; and changes in global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs, and assumptions upon which we base our expectations may change prior to the end of each quarter or year.
Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this Report, could cause our results to differ materially from those expressed in the forward-looking statements. Further information concerning these and other factors is contained in JetBlue's filings with the U.S. Securities and Exchange Commission (the "SEC"), including but not limited to in our Annual Report on Form 10-K for the year ended December 31, 2023, as may be updated by our other SEC filings. In light of these risks and uncertainties, the forward-looking events discussed in this Report might not occur. Our forward-looking statements speak only as of the date of this Report. Other than as required by law, we undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.
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| JETBLUE AIRWAYS CORPORATION |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (unaudited, in millions, except per share amounts) |
|
| | | | | | | | | | | | | | | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, | | | | | |
| (percent changes based on unrounded numbers) | 2024 | | 2023 | | Percent Change | | 2024 | | 2023 | | Percent Change | | | | | | | |
| OPERATING REVENUES | | | | | | | | | | | | | | | | | | |
| Passenger | $ | 2,265 | | | $ | 2,460 | | | (7.9) | | | $ | 4,319 | | | $ | 4,641 | | | (6.9) | | | | | | | | |
| Other | 163 | | | 150 | | | 9.1 | | | 318 | | | 296 | | | 7.3 | | | | | | | | |
| Total operating revenues | 2,428 | | | 2,610 | | | (6.9) | | | 4,637 | | | 4,937 | | | (6.1) | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| OPERATING EXPENSES | | | | | | | | | | | | | | | | | | |
| Aircraft fuel | 626 | | | 621 | | | 0.7 | | | 1,251 | | | 1,406 | | | (11.0) | | | | | | | | |
| Salaries, wages and benefits | 784 | | | 772 | | | 1.6 | | | 1,607 | | | 1,514 | | | 6.2 | | | | | | | | |
| Landing fees and other rents | 177 | | | 163 | | | 8.6 | | | 341 | | | 323 | | | 5.8 | | | | | | | | |
| Depreciation and amortization | 163 | | | 155 | | | 5.3 | | | 322 | | | 306 | | | 5.0 | | | | | | | | |
| Aircraft rent | 25 | | | 34 | | | (25.2) | | | 52 | | | 66 | | | (20.8) | | | | | | | | |
| Sales and marketing | 87 | | | 82 | | | 6.6 | | | 164 | | | 157 | | | 4.3 | | | | | | | | |
| Maintenance, materials and repairs | 150 | | | 170 | | | (11.5) | | | 283 | | | 345 | | | (18.0) | | | | | | | | |
| Special items | 1 | | | 24 | | | (97.3) | | | 563 | | | 136 | | | NM (1) | | | | | | | |
| Other operating expenses | 358 | | | 354 | | | 1.2 | | | 717 | | | 691 | | | 3.7 | | | | | | | | |
| Total operating expenses | 2,371 | | | 2,375 | | | (0.1) | | | 5,300 | | | 4,944 | | | 7.2 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| OPERATING INCOME (LOSS) | 57 | | | 235 | | | (75.9) | | | (663) | | | (7) | | | NM | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Operating margin | 2.3 | % | | 9.0 | % | | (6.7) | | pts. | (14.3) | % | | (0.1) | % | | (14.2) | | pts. | | | | | | |
| | | | | | | | | | | | | | | | | | |
| OTHER INCOME (EXPENSE) | | | | | | | | | | | | | | | | | | |
| Interest expense | (63) | | | (47) | | | 33.2 | | | (115) | | | (93) | | | 24.1 | | | | | | | | |
| Interest income | 18 | | | 18 | | | (0.3) | | | 37 | | | 30 | | | 21.6 | | | | | | | | |
| Capitalized interest | 4 | | | 5 | | | (9.0) | | | 8 | | | 10 | | | (9.3) | | | | | | | | |
| Gain (loss) on investments, net | (2) | | | 4 | | | NM | | (23) | | | 7 | | | NM | | | | | | | |
| Other | 17 | | | 1 | | | NM | | 20 | | | 3 | | | NM | | | | | | | |
| Total other expense | (26) | | | (19) | | | (35.3) | | | (73) | | | (43) | | | (69.1) | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| INCOME (LOSS) BEFORE INCOME TAXES | 31 | | 216 | | | (85.5) | | | (736) | | | (50) | | | NM | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Pre-tax margin | 1.3 | % | | 8.3 | % | | (7.0) | | pts. | (15.9) | % | | (1.0) | % | | (14.9) | | pts. | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Income tax benefit (expense) | (6) | | | (78) | | | (91.9) | | | 45 | | | (4) | | | NM | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| NET INCOME (LOSS) | $ | 25 | | | $ | 138 | | | (81.9) | | | $ | (691) | | | $ | (54) | | | NM | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| EARNINGS (LOSS) PER COMMON SHARE: | | | | | | | | | | | | | | | | | | |
| Basic | $ | 0.07 | | | $ | 0.41 | | | | | $ | (2.02) | | | $ | (0.16) | | | | | | | | | | |
| Diluted | $ | 0.07 | | | $ | 0.41 | | | | | $ | (2.02) | | | $ | (0.16) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| WEIGHTED AVERAGE SHARES OUTSTANDING: | | | | | | | | | | | | | | | | | |
| Basic | 345.1 | | | 331.9 | | | | | 342.7 | | | 330.0 | | | | | | | | | | |
| Diluted | 348.9 | | | 333.6 | | | | | 342.7 | | | 330.0 | | | | | | | | | | |
(1) Not meaningful or greater than 100% change.
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| JETBLUE AIRWAYS CORPORATION |
| COMPARATIVE OPERATING STATISTICS |
| (unaudited) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | |
| (percent changes based on unrounded numbers) | | | | | | | 2024 | | 2023 | | Percent Change | | 2024 | | 2023 | | Percent Change | |
| Revenue passengers (thousands) | | | | | | | 10,375 | | | 11,207 | | | (7.4) | | | 19,960 | | | 21,398 | | | (6.7) | | |
| Revenue passenger miles (RPMs) (millions) | | | | | | | 14,192 | | | 14,798 | | | (4.1) | | | 27,194 | | | 28,173 | | | (3.5) | | |
| Available seat miles (ASMs) (millions) | | | | | | | 16,887 | | | 17,353 | | | (2.7) | | | 33,200 | | | 34,122 | | | (2.7) | | |
| Load factor | | | | | | | 84.0 | % | | 85.3 | % | | (1.3) | | pts. | 81.9 | % | | 82.6 | % | | (0.7) | | pts. |
Aircraft utilization (hours per day) (1) | | | | | | | 10.4 | | | 11.3 | | | (8.0) | | | 10.3 | | | 11.2 | | | (8.0) | | |
| | | | | | | | | | | | | | | | | | |
| Average fare | | | | | | | $ | 218.27 | | | $ | 219.47 | | | (0.5) | | | $ | 216.41 | | | $ | 216.90 | | | (0.2) | | |
| Yield per passenger mile (cents) | | | | | | | 15.96 | | | 16.62 | | | (4.0) | | | 15.88 | | | 16.47 | | | (3.6) | | |
| Passenger revenue per ASM (cents) | | | | | | | 13.41 | | | 14.17 | | | (5.4) | | | 13.01 | | | 13.60 | | | (4.3) | | |
| Operating revenue per ASM (cents) | | | | | | | 14.38 | | | 15.04 | | | (4.4) | | | 13.97 | | | 14.47 | | | (3.5) | | |
| Operating expense per ASM (cents) | | | | | | | 14.04 | | | 13.68 | | | 2.6 | | | 15.96 | | | 14.49 | | | 10.2 | | |
Operating expense per ASM, excluding fuel (cents) (2) | | | | | | | 10.24 | | | 9.87 | | | 3.7 | | | 10.40 | | | 9.87 | | | 5.4 | | |
| | | | | | | | | | | | | | | | | | |
| Departures | | | | | | | 81,424 | | | 89,036 | | | (8.5) | | | 161,124 | | | 176,517 | | | (8.7) | | |
| Average stage length (miles) | | | | | | | 1,293 | | | 1,218 | | | 6.2 | | | 1,286 | | | 1,208 | | | 6.5 | | |
| Average number of operating aircraft during period | | | | | | | 285 | | | 282 | | | 1.2 | | | 285 | | | 284 | | | 0.4 | | |
| Average fuel cost per gallon | | | | | | | $ | 2.87 | | | $ | 2.73 | | | 5.1 | | | $ | 2.92 | | | $ | 3.15 | | | (7.3) | | |
| Fuel gallons consumed (millions) | | | | | | | 218 | | | 228 | | | (4.2) | | | 429 | | | 446 | | | (4.0) | | |
| Average number of full-time equivalent crewmembers | | | | | | | 20,097 | | | 20,921 | | | (3.9) | | | 20,160 | | | 20,729 | | | (2.7) | | |
| | | | | | | | | | | | | | | | | | |
(1) Includes aircraft temporarily removed from service, including aircraft impacted by the Pratt & Whitney engine groundings and lack of engine availability. (2) Refer to Note A at the end of our Earnings Release for more information on this non-GAAP financial measure. |
| | | | | | | | | | | |
| JETBLUE AIRWAYS CORPORATION |
| SELECTED CONSOLIDATED BALANCE SHEET DATA |
| (in millions) |
| June 30, 2024 | | December 31, 2023 |
| (unaudited) | | |
| Cash and cash equivalents | $ | 1,312 | | | $ | 1,166 | |
| Total investment securities | 288 | | | 564 | |
| Total assets | 13,993 | | | 13,853 | |
| Total debt | 5,370 | | | 4,716 | |
| Stockholders' equity | 2,697 | | | 3,337 | |
Note A - Non-GAAP Financial Measures
We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Earnings Release. Non-GAAP financial measures are financial measures that are derived from the condensed consolidated financial statements, but that are not presented in accordance with GAAP. We present these non-GAAP financial measures because we believe they provide useful supplemental information that enables a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides an explanation of each non-GAAP financial measure used in this Earnings Release and shows a reconciliation of each non-GAAP financial measure used in this Earnings Release to the most directly comparable GAAP financial measure.
With respect to JetBlue’s CASM Ex-Fuel (1) guidance and EBIT (2) targets, JetBlue is not able to provide a reconciliation of forward-looking measures where the quantification of certain excluded items reflected in the measures cannot be calculated or predicted at this time without unreasonable efforts. In these cases, the reconciling information that is unavailable includes a forward-looking range of financial performance measures beyond our control, such as interest rates and fuel costs, which are subject to many economic and political factors beyond our control. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results.
(1) CASM Ex-Fuel is a non-GAAP measure that excludes fuel, other non-airline operating expenses, and special items.
(2) EBIT is a non-GAAP measure that excludes interest and income taxes from net income.
Operating expense per available seat mile, excluding fuel, other non-airline operating expenses, and special items ("CASM ex-fuel")
CASM is a common metric used in the airline industry. Our CASM for the relevant periods are summarized in the table below. We exclude aircraft fuel, operating expenses related to other non-airline businesses, such as JetBlue Technology Ventures and JetBlue Travel Products, and special items from total operating expenses to determine Operating expenses ex-fuel, which is a non-GAAP financial measure, and we exclude the same items from CASM to determine CASM ex-fuel, which is also a non-GAAP financial measure. We believe the impact of these special items distorts our overall trends and that our metrics are more comparable with the presentation of our results excluding such impact.
We believe Operating Expenses ex-fuel and CASM ex-fuel are useful for investors because they provide investors the ability to measure our financial performance excluding items that are beyond our control, such as fuel costs, which are subject to many economic and political factors, as well as items that are not related to the generation of an available seat mile, such as operating expense related to certain non-airline businesses and special items. We believe these non-GAAP measures are more indicative of our ability to manage airline costs and are more comparable to measures reported by other major airlines.
For the three months ended June 30, 2024, special items included voluntary opt-out costs. For the six months ended June 30, 2024, special items included Spirit-related costs, voluntary opt-out costs, and Embraer E190 fleet transition costs.
For the three months ended June 30, 2023 special items included Spirit-related costs. For the six months ended June 30, 2023, special items included union contract costs and Spirit-related costs.
The table below provides a reconciliation of our total operating expenses (GAAP measure) to Operating Expenses ex-fuel, and our CASM to CASM ex-fuel for the periods presented.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NON-GAAP FINANCIAL MEASURE |
| RECONCILIATION OF OPERATING EXPENSE AND OPERATING EXPENSE PER ASM (CASM), EXCLUDING FUEL |
| (unaudited) |
| Three Months Ended June 30, | |
| $ | | | | Cents per ASM | | | | | | |
| | | | | | | | | | |
| ($ in millions; per ASM data in cents; percent changes based on unrounded numbers) | 2024 | | 2023 | | Percent Change | | 2024 | | 2023 | | Percent Change | | | | |
| Total operating expenses | $ | 2,371 | | $ | 2,375 | | (0.1) | | | 14.04 | | 13.68 | | | 2.6 | | | | | |
| Less: | | | | | | | | | | | | | | | |
| Aircraft fuel | 626 | | 621 | | 0.7 | | | 3.71 | | 3.58 | | | 3.5 | | | | | |
| Other non-airline expenses | 15 | | 16 | | (2.1) | | | 0.09 | | 0.09 | | | 0.6 | | | | | |
| Special items | 1 | | 24 | | (97.3) | | | — | | 0.14 | | | (97.2) | | | | | |
| Operating expenses, excluding fuel | $ | 1,729 | | $ | 1,714 | | 1.0 | | | 10.24 | | 9.87 | | | 3.7 | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, | | | | | | | | |
| $ | | | | Cents per ASM | | | | |
| | | | | | | | | | | |
| ($ in millions; per ASM data in cents; percent changes based on unrounded numbers) | 2024 | | 2023 | | Percent Change | | 2024 | | 2023 | | Percent Change | | | | | | | | |
| Total operating expenses | $ | 5,300 | | $ | 4,944 | | 7.2 | | | 15.96 | | | 14.49 | | | 10.2 | | | | | | | | | |
| Less: | | | | | | | | | | | | | | | | | | | |
| Aircraft fuel | 1,251 | | 1,406 | | (11.0) | | | 3.77 | | | 4.12 | | | (8.6) | | | | | | | | | |
| Other non-airline expenses | 32 | | 33 | | (3.3) | | | 0.10 | | | 0.10 | | | (0.7) | | | | | | | | | |
| Special items | 563 | | 136 | | NM (1) | | 1.69 | | | 0.40 | | | NM | | | | | | | | |
| Operating expenses, excluding fuel | $ | 3,454 | | $ | 3,369 | | 2.5 | | | 10.40 | | | 9.87 | | | 5.4 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
(1) Not meaningful or greater than 100% change.
Operating Expense, Operating Income (Loss), Adjusted Operating Margin, Pre-tax Income (Loss), Adjusted Pre-tax Margin, Net Income (Loss) and Earnings (Loss) per Share, excluding Special Items and Gain (Loss) on Investments
Our GAAP results in the applicable periods were impacted by credits and charges that were deemed special items.
For the three months ended June 30, 2024, special items included voluntary opt-out costs. For the six months ended June 30, 2024, special items included Spirit-related costs, voluntary opt-out costs, and Embraer E190 fleet transition costs.
For the three months ended June 30, 2023 special items included Spirit-related costs. For the six months ended June 30, 2023, special items included union contract costs and Spirit-related costs.
Certain net gains and losses on our investments were also excluded from our June 30, 2024 and 2023 non-GAAP results.
We believe the impact of these items distort our overall trends and that our metrics are more comparable with the presentation of our results excluding the impact of these items. The table below provides a reconciliation of our GAAP reported amounts to the non-GAAP amounts excluding the impact of these items for the periods presented.
| | | | | | | | | | | | | | | | | | | | | | | |
| NON-GAAP FINANCIAL MEASURE |
| RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), ADJUSTED OPERATING MARGIN, PRE-TAX INCOME (LOSS), ADJUSTED PRE-TAX MARGIN, NET INCOME (LOSS), EARNINGS (LOSS) PER SHARE, EXCLUDING SPECIAL ITEMS AND GAIN (LOSS) ON INVESTMENTS |
| | | |
| Three Months Ended June 30, | | Six Months Ended June 30, |
| (in millions except percentages) | 2024 | | 2023 | | 2024 | | 2023 |
| Total operating revenues | $ | 2,428 | | | $ | 2,610 | | | $ | 4,637 | | | $ | 4,937 | |
| | | | | | | |
| RECONCILIATION OF OPERATING EXPENSE | | | | |
| Total operating expenses | $ | 2,371 | | | $ | 2,375 | | | $ | 5,300 | | | $ | 4,944 | |
| Less: Special items | 1 | | | 24 | | | $ | 563 | | | $ | 136 | |
| Total operating expenses excluding special items | $ | 2,370 | | | $ | 2,351 | | | $ | 4,737 | | | $ | 4,808 | |
| Percent change | 0.9 | % | | | | (1.5) | % | | |
| | | | | | | |
| RECONCILIATION OF OPERATING INCOME (LOSS) | | | | | | |
| Operating income (loss) | $ | 57 | | | $ | 235 | | | $ | (663) | | | $ | (7) | |
| Add back: Special items | 1 | | | 24 | | | 563 | | | 136 | |
| Operating income (loss) excluding special items | $ | 58 | | | $ | 259 | | | $ | (100) | | | $ | 129 | |
| | | | | | | |
| RECONCILIATION OF ADJUSTED OPERATING MARGIN | | | | | | |
| Operating margin | 2.3 | % | | 9.0 | % | | (14.3) | % | | (0.1) | % |
| | | | | | | |
| Operating income (loss) excluding special items | $ | 58 | | | $ | 259 | | | $ | (100) | | | $ | 129 | |
| Total operating revenues | 2,428 | | | 2,610 | | | 4,637 | | | 4,937 | |
| Adjusted operating margin | 2.4 | % | | 9.9 | % | | (2.2) | % | | 2.6 | % |
| | | | | | | |
| RECONCILIATION OF PRE-TAX INCOME (LOSS) | | | | | | |
| Income (loss) before income taxes | $ | 31 | | | $ | 216 | | | $ | (736) | | | $ | (50) | |
| Add back: Special items | 1 | | | 24 | | | 563 | | | 136 | |
| Less: Gain (loss) on investments, net | (2) | | | 4 | | | (23) | | | 7 | |
| Income (loss) before income taxes excluding special items and gain (loss) on investments, net | $ | 34 | | | $ | 236 | | | $ | (150) | | | $ | 79 | |
| | | | | | | |
| RECONCILIATION OF ADJUSTED PRE-TAX MARGIN | | | | | | |
| Pre-tax margin | 1.3 | % | | 8.3 | % | | (15.9) | % | | (1.0) | % |
| | | | | | | |
| Income (loss) before income taxes excluding special items | $ | 34 | | | $ | 236 | | | $ | (150) | | | $ | 79 | |
| Total operating revenues | 2,428 | | | 2,610 | | | 4,637 | | | 4,937 | |
| Adjusted pre-tax margin | 1.4 | % | | 9.1 | % | | (3.2) | % | | 1.6 | % |
| | | | | | | |
| RECONCILIATION OF NET INCOME (LOSS) | | | | | | |
| Net income (loss) | $ | 25 | | | $ | 138 | | | $ | (691) | | | $ | (54) | |
| Add back: Special items | 1 | | | 24 | | | 563 | | | 136 | |
| Less: Income tax benefit related to special items | 1 | | | 7 | | | 8 | | | 48 | |
| Less: Gain (loss) on investments, net | (2) | | | 4 | | | (23) | | | 7 | |
| Less: Income tax benefit (expense) related to gain (loss) on investments, net | 1 | | | (1) | | | 6 | | | (2) | |
| Net income (loss) excluding special items and gain (loss) on investments, net | $ | 26 | | | $ | 152 | | | $ | (119) | | | $ | 29 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| NON-GAAP FINANCIAL MEASURE |
| RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), ADJUSTED OPERATING MARGIN, PRE-TAX INCOME (LOSS), ADJUSTED PRE-TAX MARGIN, NET INCOME (LOSS), EARNINGS (LOSS) PER SHARE, EXCLUDING SPECIAL ITEMS AND GAIN (LOSS) ON INVESTMENTS (CONTINUED) |
| (unaudited) |
| | | | | | | |
| Three Months Ended June 30, | | Six Months Ended June 30, |
| CALCULATION OF EARNINGS (LOSS) PER SHARE | 2024 | | 2023 | | 2024 | | 2023 |
| Earnings (Loss) per common share | | | | | | | |
| Basic | $ | 0.07 | | | $ | 0.41 | | | $ | (2.02) | | | $ | (0.16) | |
| Add back: Special items | — | | | 0.07 | | | 1.64 | | | 0.42 | |
| Less: Income tax benefit related to special items | — | | | 0.02 | | | 0.02 | | | 0.15 | |
| Less: Gain (loss) on investments, net | (0.01) | | | 0.01 | | | (0.07) | | | 0.02 | |
| Less: Income tax benefit (expense) related to gain (loss) on investments, net | — | | | — | | | 0.02 | | | (0.01) | |
| Basic excluding special items and gain (loss) on investments, net | $ | 0.08 | | | $ | 0.45 | | | $ | (0.35) | | | $ | 0.10 | |
| | | | | | | |
| Diluted | $ | 0.07 | | | $ | 0.41 | | | $ | (2.02) | | | $ | (0.16) | |
| Add back: Special items | — | | | 0.07 | | | 1.64 | | | 0.42 | |
| Less: Income tax benefit related to special items | — | | | 0.02 | | | 0.02 | | | 0.15 | |
| Less: Gain (loss) on investments, net | (0.01) | | | 0.01 | | | (0.07) | | | 0.02 | |
| Less: Income tax benefit (expense) related to gain (loss) on investments, net | — | | | — | | | 0.02 | | | (0.01) | |
| Diluted excluding special items and gain (loss) on investments, net | $ | 0.08 | | | $ | 0.45 | | | $ | (0.35) | | | $ | 0.10 | |
CONTACTS
JetBlue Investor Relations
Tel: +1 718 709 2202
ir@jetblue.com
JetBlue Corporate Communications
Tel: +1 718 709 3089
corpcomm@jetblue.com
Ex 99.2 - Investor Update
Investor Update: July 30, 2024
This update provides JetBlue’s investor guidance for the third quarter ending September 30, 2024 and full year 2024.
| | | | | | | | |
Third Quarter and Full Year 2024 Outlook | Estimated 3Q 2024 | Estimated FY 2024 |
| | |
| Capacity and Revenue | | |
| Available Seat Miles ("ASMs") Year-Over-Year | (6.0%) - (3.0%) | (5.0%) - (2.5%) |
| Revenue Year-Over-Year | (5.5%) - (1.5%) | (6.0%) - (4.0%) |
| Expense | | |
CASM Ex-Fuel (1) Year-Over-Year (2) | 6.0% - 8.0% | 6.5% - 8.5% |
| | |
Fuel Price per Gallon (3), (4) | $2.82 - $2.97 | $2.80 - $3.00 |
| | |
| Capital Expenditures | ~$365 million | ~$1.6 billion |
(1) Non-GAAP financial measure; refer to Note A for further details on non-GAAP forward looking information.
(2) Includes the impact from labor agreements of approximately two points for each of the third quarter 2024 and the full year 2024.
(3) Includes fuel taxes, hedges and other fuel fees.
(4) JetBlue utilizes the forward Brent crude curve and the forward Brent crude to jet crack spread to calculate the unhedged portion of its current quarter. Fuel price is based on forward curve as of July 12, 2024.
1
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
Investor Update
Fuel Hedges
As of July 30, 2024, JetBlue’s advanced fuel derivative contracts are as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | Gallons | | Estimated Percentage of Consumption | | Price |
| | | |
| 3Q24 | | 43 million | | 20% | | USGC Jet bull call spreads at an average strike price of $2.49/gal x $2.74/gal |
| 4Q24 | | 42 million | | 20% | | USGC Jet bull call spreads at an average strike price of $2.52/gal x $2.77/gal |
FY24 (1) | | 207 million | | 24% | | USGC Jet bull call spreads at an average strike price of $2.58/gal x $2.83/gal |
(1) Includes 122 million of fuel gallons hedged in the first and second quarter of 2024.
Order Book
As of June 30, 2024, JetBlue’s operating fleet was comprised of 130 Airbus A320 aircraft, 99 Airbus A321, 32 Airbus A220 and 23 Embraer E190 aircraft, for a total of 284 aircraft. This total includes aircraft that have been temporarily removed from service, including 10 aircraft grounded as of June 30, 2024, due to the required removal of certain Pratt & Whitney engines for inspection and lack of engine availability. All aircraft temporarily removed from service are expected to return to operation in the future.
JetBlue’s contractual aircraft delivery assumption for full year, as of July 30, 2024:
| | | | | | | | | | | | |
| | |
| Year | A220 | A321NEO | TOTAL (1) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
2024 (2) | 20 | 7 | 27 | |
| 2025 | 20 | 4 | 24 | |
| 2026 | 20 | — | 20 | |
| 2027 | 5 | — | 5 | |
| 2028 | 7 | — | 7 | |
| Thereafter | 4 | 44 | 48 | |
| | | | |
(1) In addition, we have options to purchase 20 A220-300 aircraft between 2027 and 2028.
(2) Includes eight aircraft delivered in 1Q 2024 & six delivered in 2Q 2024.
JetBlue’s contractual aircraft return schedule as of July 30, 2024:
| | | | | | | | | | | | |
| | |
| Year | A320 (1) | E190 | TOTAL | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| 2024 | (2) | (16) | (18) | |
| 2025 | (5) | (7) | (12) | |
| | | | |
(1) Does not include aircraft purchased off lease.
2
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
Investor Update Forward Looking Information
This Investor Update contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Investor Update are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "may," "will," "should," "seeks," "goals," "targets" or the negative of these terms or other similar expressions. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed, or assured. Forward-looking statements contained in this Investor Update include, without limitation, statements regarding our outlook and future results of operations and financial position, our order book and related assumptions, and our aircraft return schedule. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, the risk associated with the execution of our strategic operating plans in the near-term and long-term; our extremely competitive industry; risks related to the long-term nature of our fleet order book; volatility in fuel prices and availability of fuel; increased maintenance costs associated with fleet age; costs associated with salaries, wages and benefits; risks associated with a potential material reduction in the rate of interchange reimbursement fees; risks associated with doing business internationally; our reliance on high daily aircraft utilization; our dependence on the New York metropolitan market; risks associated with extended interruptions or disruptions in service at our focus cities; risks associated with airport expenses; risks associated with seasonality and weather; our reliance on a limited number of suppliers for our aircraft, engines, and our Fly-Fi® product; risks related to new or increased tariffs imposed on commercial aircraft and related parts imported from outside the United States; the outcome of legal proceedings with respect to the NEA and our wind-down of the NEA; risks associated with cybersecurity and privacy, including information security breaches; heightened regulatory requirements concerning data security compliance; risks associated with reliance on, and potential failure of, automated systems to operate our business; our inability to attract and retain qualified crewmembers; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; reputational and business risk from an accident or incident involving our aircraft; risks associated with damage to our reputation and the JetBlue brand name; our significant amount of fixed obligations and the ability to service such obligations; our substantial indebtedness and impact on our ability to meet future financing needs; financial risks associated with credit card processors; risks associated with seeking short-term additional financing liquidity; failure to realize the full value of intangible or long-lived assets, causing us to record impairments; risks associated with disease outbreaks or environmental disasters affecting travel behavior; compliance with environmental laws and regulations, which may cause us to incur substantial costs; the impacts of federal budget constraints or federally imposed furloughs; impact of global climate change and legal, regulatory or market response to such change; increasing attention to, and evolving expectations regarding, environmental, social and governance matters; changes in government regulations in our industry; acts of war or terrorism; and changes in global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs, and assumptions upon which we base our expectations may change prior to the end of each quarter or year.
Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this Investor Update, could cause our results to differ materially from those expressed in the forward-looking statements. Further information concerning these and other factors is contained in JetBlue's filings with the U.S. Securities and Exchange Commission (the "SEC"), including but not limited to in our Annual Report on Form 10-K for the year ended December 31, 2023, as may be updated by our other SEC filings. In light of these risks and uncertainties, the forward-looking events discussed in this Investor Update might not occur. Our forward-looking statements speak only as of the date of this Investor Update. Other than as required by law, we undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.
3
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
Investor Update Note A - Non-GAAP Financial Measures
We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Investor Update. Non-GAAP financial measures are financial measures that are derived from the condensed consolidated financial statements, but that are not presented in accordance with GAAP. We present these non-GAAP financial measures because we believe they provide useful supplemental information that enables a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies.
With respect to JetBlue’s CASM Ex-Fuel (1) guidance , we are not able to provide a reconciliation of forward-looking measures where the quantification of certain excluded items reflected in the measures cannot be calculated or predicted at this time without unreasonable efforts. In these cases, the reconciling information that is unavailable includes a forward-looking range of financial measures beyond our control, such as fuel costs, which are subject to many economic and political factors beyond our control. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results.
(1) CASM Ex-Fuel is a non-GAAP measure that excludes fuel, other non-airline operating expenses, and special items.
4
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
1 2Q24 Earnings Presentation July 30, 2024
2 Safe Harbor This Presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this Presentation are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “expects,” “plans,” “intends,” “anticipates,” “indicates,” “remains,” “believes,” “estimates,” “forecast,” “guidance,” “outlook,” “may,” “will,” “should,” “seeks,” “goals,” “targets” or the negative of these terms or other similar expressions. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed, or assured. Forward-looking statements contained in this Presentation include, without limitation, statements regarding our outlook and future results of operations and financial position, including our expected return to profitability, expectations with respect to our headwinds, and our business strategy and plans and objectives for future operations, including our refreshed standalone strategies, such as JetForward. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, the risk associated with the execution of our strategic operating plans in the near-term and long-term; our extremely competitive industry; risks related to the long-term nature of our fleet order book; volatility in fuel prices and availability of fuel; increased maintenance costs associated with fleet age; costs associated with salaries, wages and benefits; risks associated with a potential material reduction in the rate of interchange reimbursement fees; risks associated with doing business internationally; our reliance on high daily aircraft utilization; our dependence on the New York metropolitan market; risks associated with extended interruptions or disruptions in service at our focus cities; risks associated with airport expenses; risks associated with seasonality and weather; our reliance on a limited number of suppliers for our aircraft, engines, and our Fly-Fi® product; risks related to new or increased tariffs imposed on commercial aircraft and related parts imported from outside the United States; the outcome of legal proceedings with respect to the NEA and our wind-down of the NEA; risks associated with cybersecurity and privacy, including information security breaches; heightened regulatory requirements concerning data security compliance; risks associated with reliance on, and potential failure of, automated systems to operate our business; our inability to attract and retain qualified crewmembers; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; reputational and business risk from an accident or incident involving our aircraft; risks associated with damage to our reputation and the JetBlue brand name; our significant amount of fixed obligations and the ability to service such obligations; our substantial indebtedness and impact on our ability to meet future financing needs; financial risks associated with credit card processors; risks associated with seeking short-term additional financing liquidity; failure to realize the full value of intangible or long-lived assets, causing us to record impairments; risks associated with disease outbreaks or environmental disasters affecting travel behavior; compliance with environmental laws and regulations, which may cause us to incur substantial costs; the impacts of federal budget constraints or federally imposed furloughs; impact of global climate change and legal, regulatory or market response to such change; increasing attention to, and evolving expectations regarding, environmental, social and governance matters; changes in government regulations in our industry; acts of war or terrorism; and changes in global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs, and assumptions upon which we base our expectations may change prior to the end of each quarter or year. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this Presentation, could cause our results to differ materially from those expressed in the forward-looking statements. Further information concerning these and other factors is contained in JetBlue's filings with the U.S. Securities and Exchange Commission (the “SEC”), including but not limited to in our Annual Report on Form 10-K for the year ended December 31, 2023, as may be updated by our other SEC filings. In light of these risks and uncertainties, the forward-looking events discussed in this presentation might not occur. Our forward-looking statements speak only as of the date of this Presentation. Other than as required by law, we undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. 2
3 2Q24 Earnings and Strategy Update Joanna Geraghty Chief Executive Officer
4 Delivered on 2Q Targets, Led by a More Reliable Operation Outperformed 2Q guidance metrics, demonstrating laser-focus on execution Generated adjusted pre-tax income of $34M and adjusted earnings per share of $0.08 (1) • Year-over-year (YoY) improvements in completion factor (~one pt. better), A14 (~seven pts. better) and mishandled baggage rate (~25% better), driven by a focus on reliability and robust summer preparation • Achieved ~$140M of ~$300M revenue initiative target for 2024, up from $40M last quarter and on-track to realize full ~$300M by year-end • Outperformed cost expectations, supported by better operational performance, moderating fuel prices and the ramp of Structural Cost Program benefits Maintained strong liquidity position, with $1.6B (2) of liquidity, or 17% of trailing twelve-month revenue Announced additional network optimization initiatives and enhancements to Blue Basic in support of evolved strategy, JetForward 2Q24 JetForward | Financial Results & Guidance (1) See Appendix A for further details on Non-GAAP measures. (2) Excludes undrawn $600M revolving credit facility.
5 Enhancing Our Strengths to Drive Our Path Forward JetForward | Financial Results & Guidance Low Cost Structure Highly Engaged Crewmembers & Distinct Culture High-Value Geography Differentiated Product & Services
66
7 Embarking on business and structural cost transformation • Rapid cost inflation driven by labor, maintenance, and fuel Costs Addressing product gaps and better merchandising existing offerings • Value carrier revenue growth has not matched pace of inflation Revenue Re-investing in core geographies and thoughtfully closing underperforming BlueCities • Strategic pursuits (Northeast Alliance and Spirit) consumed resources and slowed response to demand changes Network Improving reliability by investing in on-time performance and delivering consistent customer experience • ATC (1) understaffing is severely impacting highly congested airports, while customers are ascribing more value to reliability Reliability Pursuing “capital light” levers for growth• Grounded aircraft due to Pratt & Whitney (P&W) impeding growth and exacerbating unit cost inflation Fleet Deferred ~$3.0B of capital expenditures to 2030 and beyond, giving JetForward runway to deliver benefits • Pressured profitability hampering multi-year free cash flow generation potential Balance Sheet Solutions JetForward | Financial Results & Guidance (1) Air Traffic Control. Core Strategic Headwinds Acting With Urgency to Address Headwinds
8 JetForward: Our Path to Sustained Profitability Targeting $800-900M (1) in incremental EBIT (2) from 2025 – 2027 ~$175M ~$400M ~$100M ~$175M Reliable & caring service drives choice, satisfaction and cost savings Best East Coast leisure network where our value proposition is positioned to win Products and perks customers value to capture growing share of premium customers A secure financial future that sustains our cost advantage to our peers & restores our balance sheet EBIT Uplift 2025 - 2027 $800 - $900M Four Priority Moves JetForward | Financial Results & Guidance 8 (1) Stated EBIT initiative range is forecasted to include ~$25M of incremental depreciation, amortization and aircraft rent expense from 2025 - 2027. (2) Earnings before interest and taxes. See Appendix A for further details on Non-GAAP measures.
9 Priority Moves Anchor Our 2024 Strategic Initiatives and Path to Sustained Profitability Product Reliability Financial Future Introduced preferred seating Enhancing Blue Basic with free carry-on bag Added new loyalty partners Four Priority Moves ~$175M ~$400M ~$100M 2027 Targets ~$800-900M Smoothed aircraft delivery stream Multi-year investment in improving on- time performance Deferred ~$3.0B of capex to 2030s Targeting $800-900M EBIT (2) uplift, evenly realized from 2025 – 2027 Initial organizational & real-estate optimization driving structural cost savings Announced Implemented JetForward | Financial Results & Guidance Illustrative upcoming announcements Network Refocused LAX footprint & exited unprofitable routes ~$175M Puerto Rico growth & new Mint cities Rightsized LGA & redeployed to high performing leisure & VFR (1) Reinvesting in core Northeast & Florida franchises Business & cost transformation program (1) VFR – visiting friends and relatives. (2) See Appendix A for further details on Non-GAAP measures. Note: Illustrative, announced as of July 30th, see appendix for more detail on announced network changes.
10 Commercial Update and Outlook Marty St. George President
11 1 2 2Q24 vs. 2Q23(1) (6.9%) (2.7%) Expect YoY Unit Revenue Improvement in 2H24 2Q Revenue Strengthened by Premium Performance • Even More Space seating RASM up double digits YoY • In-month bookings outperformed expectations • Latin leisure markets continued to be challenged by off-peak capacity levels • Achieved ~$140M of $300M in 2024 revenue initiatives, outpacing initial internal forecasts Boosting Reliability Through Operational Investments • Better disruption recovery in 2Q, with a five point YoY on-time performance improvement during recovery days • Took steps to reduce peak utilization, ensuring a robust summer operation Taking Advantage of Unique Capacity and Expected Revenue Tailwinds • Markedly reduced second half trough capacity to better match supply and demand • Competitive capacity expected to moderate in Latin and Florida in 2H • Sequential YoY unit revenue step up expected from 2Q into 3Q, supported by eased YoY comparison and lapping of Northeast Alliance wind-down in 3Q23 • $300M of 2024 revenue initiatives planned to ramp in back half, led by network and product improvements 3Q24 vs. 3Q23(2) (6.0%) to (3.0%) (5.5)% to (1.5)% ASMs Revenue Guidance (4.0%) to (2.0%) Guidance (9.5%) to (6.5%) ASMs Revenue JetForward | Financial Results & Guidance (1) Guidance represents June 3, 2024 update. Initial 1Q guidance on April 23, 2024 of (10.5%) to (6.5%) YoY for revenue and (5.0%) to (2.0%) YoY for ASMs. (2) Represents guidance metrics.
12 Financial Update and Outlook Ursula Hurley Chief Financial Officer
13 2Q24 Guidance 2Q24 Actual 3Q24 Guidance FY24 Guidance 3.7% 6.0% to 8.0% CASM ex-Fuel(1), (2),YoY Growth Focused on Controllable Cost Execution Amidst 2H Headwinds Operational Execution Supported CASM ex-Fuel Outperformance in 2Q • Two+ point beat of midpoint of revised CASM ex-Fuel guidance range, one point of which is attributed to improved completion factor and operational efficiencies Expect Cost Step-Up in 2H24 • Contractual wage rate step-ups expected to contribute two points of pressure to YoY CASM ex- Fuel levels in each 3Q and 4Q • Shift of expenses from 1H into 2H adding 0.5 points to forecasted 3Q CASM ex-Fuel Maintaining Full-Year Guide Despite Pratt & Whitney Headwinds • Pratt & Whitney compensation accounting continues to drive one point of expected CASM ex-Fuel pressure, while margin-accretive capacity reductions in 2H also expected to drive one point of pressure to full-year CASM ex-Fuel • Structural cost program has driven ~$145M of cost savings year-to-date • Fleet modernization program has achieved $83M in total program savings through 2Q, run-rate goal now $100M, exceeding initial goal of $75M • New comprehensive cost transformation to take shape with refocused strategy 5.0% to 7.0% (2.7%) (6.0%) – (3.0%) (5.0%) – (2.5%) YoY ASM Growth 6.5% to 8.5% JetForward | Financial Results & Guidance (1) Guidance represents June 3, 2024 update. Initial 1Q guidance on April 23, 2024 of 5.5% to 7.5% YoY for CASM ex-Fuel. (2) Operating expense per available seat mile, excluding fuel, other non-airline operating expenses and special items (“CASM ex-Fuel”); refer to reconciliations of non-GAAP financial measures in Appendix A.
14 Areas of focus Journey to Optimize Controllable Costs Has Evolved Over Time Targeted Savings Business & Cost Transformation Program (2025 – 2027) Structural Cost Program 1.0 (2018 – 2020) Structural Cost Program 2.0 (2022 – 2024) $250M - $300M Original Target $150M - $200M Original Target Business partner contracts and agreements Maintenance contract optimization Network scheduling Frontline planning (via enterprise planning team) Maintenance timing optimization Data-science driven optimization Enterprise efficiency and automation Labor productivity and infrastructure strategy ~$175M Preliminary Target On-track to achieve revised target of $175M - $200M Outcome Run-rate savings were on-track to exceed target pre- COVID Goal of sustaining our competitive cost advantage vs. other airlines JetForward | Financial Results & Guidance Complete Complete by EOY 2024 Announced
15 Taking Active Steps to Improve Balance Sheet, while Mitigating Pratt & Whitney Impact to Growth Pratt & Whitney A320 Extensions E190 Retirements A220 Deliveries Consideration Fleet Impact • Average of 11 aircraft on ground in 2024 • Expect grounded aircraft, on average, to be in the mid-to-high teens in 2025 due to geared turbofan (GTF) powdered metal and other engine availability issues • Extended leases on, or purchased off lease, 12 aircraft to drive capital light growth – plan for ~30 total • E190 to exit fleet by 2025, simplifying to two fleet types – A220 & A320 family • Prioritizing A220 deliveries, which have 90% more premium seats and deliver 30% lower unit costs, on average, vs. E190s exiting our fleet Impact Delivery Assumption A220 A321neo Total (1) 2024 (2) 20 7 27 2025 20 4 24 2026 20 - 20 2027 5 - 5 2028 7 - 7 Contractual Returns A320 Embraer E190 Total 2024 (2) (3) (16) (18) 2025 (5) (7) (12) JetBlue’s contractual aircraft return schedule as of July 30, 2024: JetBlue’s contractual aircraft delivery assumption for full year as of July 30, 2024: Expecting ~flat YoY capacity growth in 2025 Fleet Detail (1) In addition, we have options to purchase 20 A220-300 aircraft between 2027 and 2028. See Appendix for more information. (2) Includes eight aircraft delivered in 1Q 2024 & six delivered in 2Q 2024. (3) Does not include aircraft purchased off lease. JetForward | Financial Results & Guidance Aircraft Deferral • In January 2024, smoothed upcoming delivery stream • In July 2024, deferred 44 A321neo aircraft from 2025 – 2029 to 2030+ totaling ~$3.0B of capex savings, to help restore balance sheet and improve cash flow
16 Restoring Balance Sheet Health Through Capital Discipline to Achieve Free Cash Flow Focused on Assets with Highest Return on Invested Capital • Announced deferral of aircraft from Airbus order book, expected to reduce planned capital expenditures by ~$3.0B through 2029 • Shifting 44 total deliveries, all A321neos, from 2025-2029 to 2030 and beyond • Aircraft on order continue to be subject to availability & GTF concerns • Relieves required financing needs and resulting interest expense • Pursuing capital light growth through extending the lives of ~30 A320 aircraft Managing Liquidity with Efficient Financing • Committed financing to-date of ~$1.3B to support 2024 capital expenditures • Successfully amended and extended $600M revolving credit facility • Ended 2Q24 with ~$1.6B in liquidity, excluding undrawn revolving credit facility Prudently Managing Risk to Protect Earnings • 3Q24 fuel consumption hedged (1) 20%, 4Q24 fuel consumption hedged 20% and full year 2024 consumption hedged 24% JetForward | Financial Results & Guidance (1) Fuel hedges as of July 30, 2024.
17 JetForward | Financial Results & Guidance Finalized Our Multi-year Strategy, JetForward, Targeting $800M - $900M EBIT (1) Uplift 2025 - 2027 Reliable and caring service Best East Coast leisure network Products and perks customers value A secure financial future JetForward Began implementing multi-year reliability initiative Announced significant network and product changes, including closure of 15 BlueCities and over 50 route exits since early 2024 Revenue initiatives on-track to deliver $300M of benefits in 2024, with more product announcements to come in the second half Deferred ~$3.0B of previously planned capital expenditures from 2025 – 2029 to 2030+ Pursuing transformation of business to sustain competitive cost advantage EBIT benefit expected to be realized evenly between 2025 - 2027 Incremental EBIT 2025 - 2027 $800M – $900M (1) See Appendix A for further details on Non-GAAP measures.
18 (1) Prior full year guidance as of April 23, 2024. (2) See Appendix A for further details on Non-GAAP measures. (3) Includes the impact from labor agreements of approximately two points for each of the third quarter and full year 2024. (4) Fuel hedged 20% for 3Q24; 24% for FY24. As of July 30, 2024. (5) Fuel price based on forward curve as of July 12, 2024. Includes fuel taxes, hedges, and other fuel fees. Guidance Estimated 3Q 2024 Estimated FY 2024 Available Seat Miles (ASMs) Year-over-Year (6.0%) – (3.0%) (5.0%) – (2.5%) Previously down low single digits (1) Revenue Year-over-Year (5.5%) – (1.5%) (6.0%) – (4.0%) Previously down low single digits (1) CASM ex-Fuel(2), (3) Year-over-Year 6.0% – 8.0% 6.5% – 8.5% Previously up mid-to-high single digits (1) Fuel Price per Gallon(4), (5) $2.82 – $2.97 $2.80 – $3.00 Capital Expenditures ~$365 million ~$1.6 billion JetForward | Financial Results & Guidance Outlook Summary
19 Non-GAAP Financial Measures We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Presentation. Non-GAAP financial measures are financial measures that are derived from the condensed consolidated financial statements, but that are not presented in accordance with GAAP. We present these non-GAAP financial measures because we believe they provide useful supplemental information that enables a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. With respect to JetBlue’s CASM Ex-Fuel guidance (1) and EBIT (2) targets, we are not able to provide a reconciliation of forward-looking measures where the quantification of certain excluded items reflected in the measures cannot be calculated or predicted at this time without unreasonable efforts. In these cases, the reconciling information that is unavailable includes a forward-looking range of financial performance measures beyond our control, such as interest rates and fuel costs, which are subject to many economic and political factors beyond our control. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results. (1) CASM Ex-Fuel is a non-GAAP measure that excludes fuel, other non-airline operating expenses, and special items. (2) EBIT is a non-GAAP measure that excludes interest and income taxes from net income. Appendix A
20 Operating expense per available seat mile, excluding fuel, other non-airline operating expenses, and special items (“CASM Ex- Fuel”) Operating Expense per Available Seat Mile (“CASM”) is a common metric used in the airline industry. Our CASM for the relevant periods are summarized in the table below. We exclude aircraft fuel, operating expenses related to other non-airline businesses, such as JetBlue Technology Ventures and JetBlue Travel Products, and special items from total operating expenses to determine Operating Expenses ex-fuel, which is a non-GAAP financial measure, and we exclude the same items from CASM to determine CASM ex-fuel, which is also a non-GAAP financial measure. We believe the impact of these special items distorts our overall trends and that our metrics are more comparable with the presentation of our results excluding such impact. We believe that Operating Expenses ex-fuel and CASM ex-fuel are useful for investors because they provide investors the ability to measure our financial performance excluding items that are beyond our control, such as fuel costs, which are subject to many economic and political factors, as well as items that are not related to the generation of an available seat mile, such as operating expense related to certain non-airline businesses and special items. We believe these non-GAAP measures are more indicative of our ability to manage airline costs and are more comparable to measures reported by other major airlines. For the three months ended June 30, 2024, special items included voluntary opt-out costs. For the six months ended June 30, 2024, special items included Spirit-related costs, voluntary opt-out costs, and Embraer E190 fleet transition costs. For the three months ended June 30, 2023, special items included Spirit-related costs. For the six months ended June 30, 2023, special items included union contract costs and Spirit-related costs. The table below provides a reconciliation of our total operating expenses (GAAP measure) to Operating Expenses ex-fuel, and our CASM to CASM ex-fuel for the periods presented. NON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE AND OPERATING EXPENSE PER ASM (CASM), EXCLUDING FUEL (unaudited) Three Months Ended June 30, Six Months Ended June 30, $ Cents per ASM $ Cents per ASM ($ in millions; per ASM data in cents; percent changes based on unrounded numbers) 2024 2023 Percent Change 2024 2023 Percent Change 2024 2023 Percent Change 2024 2023 Percent Change Total operating expenses $ 2,371 $ 2,375 (0.1) 14.04 13.68 2.6 $ 5,300 $ 4,944 7.2 15.96 14.49 10.2 Less: Aircraft fuel 626 621 0.7 3.71 3.58 3.5 1,251 1,406 (11.0) 3.77 4.12 (8.6) Other non-airline expenses 15 16 (2.1) 0.09 0.09 0.6 32 33 (3.3) 0.10 0.10 (0.7) Special items 1 24 (97.3) — 0.14 (97.2) 563 136 NM (1) 1.69 0.40 NM Operating expenses, excluding fuel $ 1,729 $ 1,714 1.0 10.24 9.87 3.7 $ 3,454 $ 3,369 2.5 10.40 9.87 5.4 (1) Not meaningful or greater than 100% change.
21 Operating expense, operating income (loss), adjusted operating margin, pre-tax income (loss), adjusted pre-tax margin, net income (loss) and earnings (loss) per share, excluding special items and gain (loss) on investments Our GAAP results in the applicable periods were impacted by credits and charges that were deemed special items. For the three months ended June 30, 2024, special items included voluntary opt-out costs. For the six months ended June 30, 2024, special items included Spirit-related costs, voluntary opt-out costs, and Embraer E190 fleet transition costs. For the three ended June 30, 2023, special items included Spirit-related costs. For the six months ended June 30, 2023, special items included union contract costs and Spirit-related costs. Certain net gains and losses on our investments were also excluded from our 2024 and 2023 non- GAAP results. We believe the impact of these items distort our overall trends and that our metrics are more comparable with the presentation of our results excluding the impact of these items. The table provides a reconciliation of our GAAP reported amounts to the non-GAAP amounts excluding the impact of these items for the periods presented. Non-GAAP Financial Measure RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), ADJUSTED OPERATING MARGIN, PRE-TAX INCOME (LOSS), ADJUSTED PRE-TAX MARGIN, NET INCOME (LOSS), EARNINGS (LOSS) PER SHARE, EXCLUDING SPECIAL ITEMS AND GAIN (LOSS) ON INVESTMENTS (unaudited) Three Months Ended June 30, Six Months Ended June 30, (in millions except percentages) 2024 2023 2024 2023 Total operating revenues $ 2,428 $ 2,610 $ 4,637 $ 4,937 RECONCILIATION OF OPERATING EXPENSE Total operating expenses $ 2,371 $ 2,375 $ 5,300 $ 4,944 Less: Special items 1 24 563 136 Total operating expenses excluding special items $ 2,370 $ 2,351 $ 4,737 $ 4,808 Percent change 0.9 % (1.5) % RECONCILIATION OF OPERATING INCOME (LOSS) Operating income (loss) $ 57 $ 235 $ (663) $ (7) Add back: Special items 1 24 563 136 Operating income (loss) excluding special items $ 58 $ 259 $ (100) $ 129 RECONCILIATION OF ADJUSTED OPERATING MARGIN Operating margin 2.3 % 9.0 % (14.3)% (0.1)% Operating income (loss) excluding special items $ 58 $ 259 $ (100) $ 129 Total operating revenues 2,428 2,610 4,637 4,937 Adjusted operating margin 2.4 % 9.9 % (2.2)% 2.6 % RECONCILIATION OF PRE-TAX INCOME (LOSS) Income (loss) before income taxes $ 31 $ 216 $ (736) $ (50) Add back: Special items 1 24 563 136 Less: Gain (loss) on investments, net (2) 4 (23) 7 Income (loss) before income taxes excluding special items and gain (loss) on investments, net $ 34 $ 236 $ (150) $ 79 RECONCILIATION OF ADJUSTED PRE-TAX MARGIN Pre-tax margin 1.3 % 8.3 % (15.9)% (1.0)% Income (loss) before income taxes excluding special items $ 34 $ 236 $ (150) $ 79 Total operating revenues 2,428 2,610 4,637 4,937 Adjusted pre-tax margin 1.4 % 9.1 % (3.2)% 1.6 % RECONCILIATION OF NET INCOME (LOSS) Net income (loss) $ 25 $ 138 $ (691) $ (54) Add back: Special items 1 24 563 136 Less: Income tax benefit related to special items 1 7 8 48 Less: Gain (loss) on investments, net (2) 4 (23) 7 Less: Income tax benefit (expense) related to gain (loss) on investments, net 1 (1) 6 (2) Net income (loss) excluding special items and gain (loss) on investments, net $ 26 $ 152 $ (119) $ 29
22 Operating expense, operating income (loss), adjusted operating margin, pre-tax income (loss), adjusted pre-tax margin, net income (loss) and earnings (loss) per share, excluding special items and gain (loss) on investments (continued) Our GAAP results in the applicable periods were impacted by credits and charges that were deemed special items. For the three months ended June 30, 2024, special items included voluntary opt-out costs. For the six months ended June 30, 2024, special items included Spirit-related costs, voluntary opt-out costs, and Embraer E190 fleet transition costs. For the three ended June 30, 2023, special items included Spirit-related costs. For the six months ended June 30, 2023, special items included union contract costs and Spirit-related costs. Certain net gains and losses on our investments were also excluded from our June 30, 2024 and 2024 non-GAAP results. We believe the impact of these items distort our overall trends and that our metrics are more comparable with the presentation of our results excluding the impact of these items. The table provides a reconciliation of our GAAP reported amounts to the non-GAAP amounts excluding the impact of these items for the periods presented. Non-GAAP Financial Measure RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), ADJUSTED OPERATING MARGIN, PRE-TAX INCOME (LOSS), ADJUSTED PRE-TAX MARGIN, NET INCOME (LOSS), EARNINGS (LOSS) PER SHARE, EXCLUDING SPECIAL ITEMS AND GAIN (LOSS) ON INVESTMENTS (CONTINUED) (unaudited) Three Months Ended June 30, Six Months Ended June 30, CALCULATION OF EARNINGS (LOSS) PER SHARE 2024 2023 2024 2023 Earnings (Loss) per common share Basic $ 0.07 $ 0.41 $ (2.02) $ (0.16) Add back: Special items — 0.07 1.64 0.42 Less: Income tax benefit related to special items — 0.02 0.02 0.15 Less: Gain (loss) on investments, net (0.01) 0.01 (0.07) 0.02 Less: Income tax benefit (expense) related to gain (loss) on investments, net — — 0.02 (0.01) Basic excluding special items and gain (loss) on investments, net $ 0.08 $ 0.45 $ (0.35) $ 0.10 Diluted $ 0.07 $ 0.41 $ (2.02) $ (0.16) Add back: Special items — 0.07 1.64 0.42 Less: Income tax benefit related to special items — 0.02 0.02 0.15 Less: Gain (loss) on investments, net (0.01) 0.01 (0.07) 0.02 Less: Income tax benefit (expense) related to gain (loss) on investments, net — — 0.02 (0.01) Diluted excluding special items and gain (loss) on investments, net $ 0.08 $ 0.45 $ (0.35) $ 0.10
23 Order Book Updates Contractual Delivery Stream As of April 23, 2024 As of July 30, 2024 Difference A220 A321neo Total (1) A220 A321neo Total (1) A220 A321neo Total 2024 (2) 20 7 27 20 7 27 - - - 2025 20 5 25 20 4 24 - (1) (1) 2026 20 4 24 20 - 20 - (4) (4) 2027 5 9 14 5 - 5 - (9) (9) 2028 7 16 23 7 - 7 - (16) (16) Thereafter 4 14 18 4 44 48 - 30 30 Total 76 55 131 76 55 131 - - - (1) In addition, we have options to purchase 20 A220-300 aircraft between 2027 and 2028. (2) Includes 14 aircraft delivered in the first half of 2024.
24 Network Detail – Planned BlueCity Closures Announced BlueCity Closures BlueCity Exit Date (1) Burlington (BTV) January 4, 2024 Baltimore-Washington (BWI) April 30, 2024 Kansas City (MCI) June 12, 2024 Bogota (BOG) June 12, 2024 Lima (LIM) June 12, 2024 Quito (UIO) June 12, 2024 Puerto Vallarta (PVR) June 12, 2024 Charlotte (CLT) October 26, 2024 Minneapolis (MSP) October 26, 2024 San Antonio (SAT) October 26, 2024 Burbank (BUR) October 26, 2024 Tallahassee (TLH) October 27, 2024 Palm Springs (PSP) Already suspended Pointe-a-Pitre (PTP) Already suspended Stewart (SWF) Already suspended 15 BlueCity Closures and 50+ Route Exits (1) Represent final day of service.
25 Network Detail – Planned Route Exits 50+ Route Exits Route Exits Route Exit Date (1) Los Angeles / Cancun – (LAX / CUN) 3-Jan-24 Newark / Miami – (EWR / MIA) 3-Jan-24 New York LaGuardia / Charleston – (LGA / CHS) 3-Jan-24 New York LaGuardia / Nashville – (LGA / BNA) 3-Jan-24 New York LaGuardia / Jacksonville – (LGA / JAX) 4-Jan-24 New York JFK / Burlington – (JFK / BTV) 4-Jan-24 New York LaGuardia / Denver – (LGA / DEN) 30-Mar-24 New York LaGuardia / Sarasota – (LGA / SRQ) 30-Mar-24 Boston / Baltimore-Washington – (BOS / BWI) 30-Apr-24 Fort Lauderdale / Austin – (FLL / AUS) 30-Apr-24 New York JFK / Portland – (JFK / PDX) 30-Apr-24 New York JFK / Puerto Vallarta – (JFK / PVR) 30-Apr-24 New York JFK / San Jose – (JFK / SJC) 30-Apr-24 New York LaGuardia / Fort Myers – (LGA / RSW) 30-Apr-24 Fort Lauderdale / Salt Lake City – (FLL / SLC) 10-Jun-24 Orlando / Salt Lake City – (MCO / SLC) 10-Jun-24 Fort Lauderdale / Atlanta – (FLL / ATL) 12-Jun-24 Fort Lauderdale / Nashville – (FLL / BNA) 12-Jun-24 Fort Lauderdale / Bogota – (FLL / BOG) 12-Jun-24 Fort Lauderdale / Lima – (FLL / LIM) 12-Jun-24 Fort Lauderdale / New Orleans – (FLL / MSY) 12-Jun-24 Fort Lauderdale / Quito – (FLL / UIO) 12-Jun-24 Los Angeles / Las Vegas – (LAX / LAS) 12-Jun-24 Los Angeles / Liberia, CR – (LAX / LIR) 12-Jun-24 Los Angeles / Miami – (LAX / MIA) 12-Jun-24 Los Angeles / Reno – (LAX / RNO) 12-Jun-24 Los Angeles / San Francisco – (LAX / SFO) 12-Jun-24 Route Exits Cont. Route Exit Date (1) Los Angeles / Puerto Vallarta – (LAX / PVR) 12-Jun-24 New York JFK / Detroit – (JFK / DTW) 12-Jun-24 New York JFK / Kansas City – (JFK / MCI) 12-Jun-24 Tampa Bay / Aguadilla, PR – (TPA / BQN) 12-Jun-24 New York LaGuardia / Nassau – (LGA / NAS) 3-Sep-24 Orlando / Los Angeles – (MCO / LAX) 3-Sep-24 Los Angeles / Nassau – (LAX / NAS) 7-Sep-24 Boston / Charlotte – (BOS / CLT) 26-Oct-24 Boston / Minneapolis St Paul – (BOS / MSP) 26-Oct-24 Boston / San Antonio – (BOS / SAT) 26-Oct-24 Los Angeles / Los Cabos – (LAX / SJD) 26-Oct-24 Los Angeles / Salt Lake City – (LAX / SLC) 26-Oct-24 Newark / Los Angeles – (EWR / LAX) 26-Oct-24 Newark / Montego Bay – (EWR / MBJ) 26-Oct-24 New York JFK / San Antonio – (JFK / SAT) 26-Oct-24 New York JFK / Burbank – (JFK / BUR) 26-Oct-24 New York LaGuardia / Atlanta – (LGA / ATL) 26-Oct-24 New York LaGuardia / Tampa Bay – (LGA / TPA) 26-Oct-24 Raleigh Durham / Cancun – (RDU / CUN) 26-Oct-24 Raleigh Durham / Orlando – (RDU / MCO) 26-Oct-24 Fort Lauderdale / Tallahassee – (FLL / TLH) 27-Oct-24 Fort Lauderdale / Guayaquil, EC – (FLL / GYE) 6-Jan-25 Fort Lauderdale / San Diego – (FLL / SAN) 6-Jan-25 Newark / Santo Domingo – (EWR / SDQ) 6-Jan-25 Hartford / Miami – (BDL / MIA) NA New York JFK / Palm Springs – (JFK / PSP) NA New York JFK / Pointe-a-Pitre – (JFK / PTP) NA (1) Represent final day of service.
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| Period Type: |
duration |
|
| X |
- DefinitionCode for the postal or zip code
| Name: |
dei_EntityAddressPostalZipCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the state or province.
| Name: |
dei_EntityAddressStateOrProvince |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:stateOrProvinceItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityCentralIndexKey |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:centralIndexKeyItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityEmergingGrowthCompany |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
| Name: |
dei_PreCommencementTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
| Name: |
dei_Security12bTitle |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:securityTitleItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
| Name: |
dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Section 14a
-Number 240
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
| Name: |
dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
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